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- Aldi attracting more shoppers and encouraging higher spending
- Families with young children core demographic group for Private Label
10 April 2006
Sydney
Independent retailer Aldi is driving Private Label growth in Australia, experiencing an increase in the number of shoppers visiting its stores and a substantial increase in the amount shoppers are spending in-store, a report released today by leading marketing information company ACNielsen has revealed.
ACNielsen’s bi-annual Private Label Report shows that Private Label products now command an overall value share of 18 percent of total packaged grocery in the quarter ending December 2005 – a 2.3 share gain versus the same period in 2002 – and Aldi was the key driver behind this gain with Private Label share of grocery for retailers excluding Aldi, remaining static at around 15 percent over the last three years.
The report showed that the vast majority of all Australian households (99%) consistently purchased Private Label, and spent an average of $123 on these products every quarter over the last two years. In comparison, Aldi shoppers spent an average of $142 in the 2005 December quarter – an increase of nine percent versus the same period in 2004.
“Aldi has certainly been the driving force behind growth in Private Label over the last year,” says Aaron Cross, Director, Retail Client Service, ACNielsen Australia. “It must be noted, however, that with new branding strategies for major retailer Private Label brands rolling out in coming months it is expected that these will have a more pronounced impact throughout the course of 2006.”
The report also revealed that Private Label share remained strongest in staple food categories, with half of all fresh milk, and over a quarter of packaged cheese (27.8%) and packaged bread (25.8%) sales attributed to Private Label.
However, the report also identified a growing consumer acceptance of Private Label in personal care categories which have traditionally commanded a high level of consumer involvement and trust including disposable nappies, sanitary protection, baby needs and medicines/first-aid – a reflection of the growth in share of young families purchasing Private Label.
“The recent share gains in personal care categories are a reflection of consumers becoming increasingly confident in the quality of Private Label – particularly where young families are concerned,” notes Cross. “Further opportunity exists for retailers to grow Private Label in health and beauty categories, and also targeting non-family demographics who currently represent 60 percent of the Australian population.”
About ACNielsen
ACNielsen, a VNU business, is the world’s leading marketing information company. Offering services in more than 100 countries, the company provides measurement and analysis of marketplace dynamics and consumer attitudes and behaviour. Clients rely on ACNielsen’s market research, proprietary products, analytical tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns
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